Streamline Health Solutions, Inc.

Greetings. Welcome to Streamlined Health Solutions first quarter fiscal 2023 earnings conference call. At this time, all participants are in listen-only mode. The question and answer session will follow the formal presentation. If anyone today should require operator assistance during the conference, please press star zero from your telephone keypad. Please note that this conference is being recorded. At this time, I'll turn the conference over to Jacob Goldberger. Jacob, you may now begin.

Thank you for joining us for the Corporate Update and Financial Results Review of Streamlined Health Solutions for the first quarter of fiscal 2023, which ended April 30th, 2023. As the conference call operator indicated, my name is Jacob Goldberger. Joining me on the call today are T. Green, Chief Executive Officer and Chairman of the Board, Ben Stilwell, President, and Tom Gibson, Chief Financial Officer. At the conclusion of today's prepared remarks, we will open the call for a question and answer session. If anyone participating on today's call does not have a full-text copy of our press release announcing these results, you can retrieve it from the company's website at www.streamlinehealth.net or from numerous financial websites. Before we begin with prepared remarks, we want to be sure we are clear for everyone on the record how certain information which may be provided today, as with all of our earnings calls, should be viewed. We therefore submit for the record the following statement. Statements made on this conference call that are not historical facts are considered to be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These are subject to risks, uncertainties, assumptions, and other factors that could cause actual results to differ materially from those we may discuss. Please refer to the company's press releases and filings made with the U.S. Securities and Exchange Commission, including our most recent Form 10-K Annual Report, which is on file with the SEC for more information about these risks, uncertainties, and assumptions and other factors. As always, we are presenting management's current analysis of these items as of today. Participants on this call should take into account these risks when evaluating the topics we will discuss. Please note, Streamline Health is not undertaking any commitment or obligation to publicly revise any such forward-looking statements made today. On today's call, we will discuss non-GAAP financial measures such as adjusted EBITDA and BOKED SAS ACV. Management uses these measures to help provide better insight into our financial performance. However, certain items of income and expense are not included in these measures, so these calculations may differ from those which another entity may utilize and calculate their own non-GAAP measures. To help you compare these amounts on consistent terms, please refer to our website at www.streetlinehealth.net and our earnings release for a reconciliation of such non-GAAP measures to the most comparable GAAP measures. I would now like to turn the call over to T. Green, Chief Executive Officer.

Thank you, Jacob. And thank you all for joining us this morning. Following my opening remarks, Ben Stilwell, president, will provide an operations and sales update, followed by a financial update from our CFO, Tom Gibson. Beginning with the financial overview, during 2022, we began reporting a new metric, book SAS ACV. which is the annualized contract value for all agreements that are being recognized into revenue as well as bookings that have not been implemented. As of April 30th, 2023, book SAS ACV was $17.8 million as compared to 17.2 million as of January 31st, 2023. $12.7 million of our book SAS ACV is implemented and contributing to recognized revenue. Our growth team is negotiating with large IDNs and hospital networks. And as a result, we expect some lumpiness in our reported bookings. That said, our first quarter was below our expectations. As of April 30, 2023, we had $6 million of cash on our balance sheet And the balance on our term loan was $9.6 million. We believe our cash on hand is sufficient to achieve positive adjusted EBITDA, less capitalized software development in fiscal 2023. We have access to a $2 million of liquidity through our non-formula line of credit. We combined Avalit and Evaluator operations on November 1st, 2023. Under Ben's leadership, the integration process was executed smoothly and we continue to achieve significant cost savings and operational improvements. We are working towards four corporate objectives in fiscal 2023. To have a client leveraging both our flagship solutions, RevID and Evaluator. An Epic based facility utilizing RevID. improved performance from our partner channel, and the achievement of break-even adjusted EBITDA, less capitalized software. Our flagship solutions are gaining a foothold in the industry. Our pre-bill solutions allow our clients to bill accurately the first time. We believe this has a significant financial impact for our hospital system clients and offer a fundamentally better way of doing business. Our nation's healthcare providers continue to emerge from COVID. Solutions like ours are critical to their financial recovery. Our solutions yield higher net patient revenue margins for our clients, increasing their available cash to better pay for higher cost of personnel and supplies. We have often commented about the backlog of potential high priority projects that we are competing with inside our hospital clients. in some cases, even after a successful booking. That macro environment is easy, and we expect implementations to accelerate meaningfully over the quarters to come and maintain our expectation of having $17 million of SAS ARR implemented during the third quarter of this fiscal year, and that run rate will translate to break-even adjusted EBITDA. We also continue to expect we will exit fiscal 2023 with $30 million of book SAS ACV. With that, I'd like to turn the call over to our president, Mr. Ben Stilwell.